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FULL YEAR 2002 RESULTS – Technip

Technip · Feb 21, 2003 · 44 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. FULL YEAR 2002 RESULTS – Technip – slide 1
    1 2002 RESULTS February 2003 Euronext 13170
  2. FULL YEAR 2002 RESULTS – Technip – slide 2
    2 I. 2002 MAIN NUMBERS AND FACTS II. 2002 FINANCIAL STATEMENTS III. MARKETS AND STRATEGIES IV. CHALLENGES V. OUTLOOK
  3. FULL YEAR 2002 RESULTS – Technip – slide 3
    3 I. 2002 MAIN NUMBERS AND FACTS 1. MAIN NUMBERS 2. SIGNIFICANT REDUCTION IN NET DEBT 3. STRONG BACKLOG AT YEAR END 4. OFFSHORE: RISING ACTIVITY IN W. AFRICA 5. ONSHORE: BREAKTHROUGH IN CHINA 6. TAKING CARE OF SHAREHOLDER…
  4. FULL YEAR 2002 RESULTS – Technip – slide 4
    2002 MAIN NUMBERS ( million) 4 EARNINGS Revenues: 4,452 EBITDA 7.8% EBITA 4.6% Net Income (29) Adjusted Net Income: 111 EPS 3.91 euro per share CASH Total Cash Generation (inc. assets disposals): 576 Total Net Debt…
  5. FULL YEAR 2002 RESULTS – Technip – slide 5
    A SIGNIFICANT REDUCTION IN NET DEBT 5 NET DEBT AMOUNT (M) NET DEBT / EBITDA z 31-12-01: 1.95 31-12-02: 1.46 1036 921 876 GROSS DEBT STRUCTURE z Variable: 28% z Euros: 84.6% 39.6% 652 506 z Fixed: 72% z Dollars: 14.6% z…
  6. FULL YEAR 2002 RESULTS – Technip – slide 6
    A STRONG BACKLOG AT YEAR-END 6 + 17% 5,776 390 Industries + 34% Prior to Pechiney 4,926 contract 290 (300 MM T-C share) 3625 2498 Onshore/ + 45% 2001 Pre-backlog Downstream converted to 2002 backlog + new orders 2138…
  7. FULL YEAR 2002 RESULTS – Technip – slide 7
    OFFSHORE: RISING ACTIVITY IN W. AFRICA 7 AFRICA Integrated fixed production NIGERIA facilities: Amenam in Nigeria Abo, Bonga, Amenam SURF: major deepwater contract worth 330 MM EQUA. GUINEA Zafiro Local content: Angola umbilical…
  8. FULL YEAR 2002 RESULTS – Technip – slide 8
    ONSHORE: BREAKTHROUGH IN PETROCHEMICALS IN CHINA 8 Major petrochemical facilities planned by Shell, BP, Bayer, BASF - often in JV with Chinese CHINA companies Beijing Technip-Coflexip awarded 4 contracts worth 300 MM Growing…
  9. FULL YEAR 2002 RESULTS – Technip – slide 9
    TAKING CARE OF SHAREHOLDER VALUE 9 IN A DEPRESSED EQUITY MARKET CONTEXT Stock Price Evolution January 2000 - February 2003 ACTIONS TAKEN Saipem +63% IHC Caland +26% Share buy-back ( 49 MM) Fluor -15% Share cancellation (3.5…
  10. FULL YEAR 2002 RESULTS – Technip – slide 10
    10 II. 2002 FINANCIAL STATEMENTS 1. INCOME STATEMENT 2. REVENUES 3. EBITDA & EBITA 4. BALANCE SHEET 5. CASH FLOW 6. CONVERTIBLE BOND
  11. FULL YEAR 2002 RESULTS – Technip – slide 11
    INCOME STATEMENT 1/2 11 Euro in millions Q4 2002 FY 2002 Revenues 1,144.9 4,452.3 EBITDA 92.3 347.6 Depreciation (34.4) (143.0) Operating Income (EBITA) 57.9 204.6 Financial Result (18.9) (50.0) Provision for Redemption Premium…
  12. FULL YEAR 2002 RESULTS – Technip – slide 12
    INCOME STATEMENT 2/2 12 Euro in millions Q4 2002 FY 2002 Operating Income After Tax 22.9 91.4 Goodwill Amortization (29.8) (117.8) Non-Operating Income (Loss) & Other (2.7) (3.0) Net Income (9.6) (29.4) Add back Goodwill…
  13. FULL YEAR 2002 RESULTS – Technip – slide 13
    REVENUES 13 2001 2002 Change Pro forma Offshore 2,125.0 2,125.8 0.0% Onshore/Downstream 1,938.6 2,352.0 - 17.6% Industries 388.7 472.0 - 17.6% Group 4,452.3 4,949.8 - 10.1% 2000 and 2001 Lower Order Intake (Onshore and…
  14. FULL YEAR 2002 RESULTS – Technip – slide 14
    EBITDA & EBITA 14 Onshore/ Offshore Downstream Industries Group Revenues 2,125.0 1 938.6 388.7 4,452.3 EBITDA 250.1 85.3 12.2 347.6 Depreciation (123.2) (16.4) (3.4) (143.0) EBITA 126.9 68.9 8.8 204.6 EBITDA margin 11.8% 4.4% 3.1%…
  15. FULL YEAR 2002 RESULTS – Technip – slide 15
    BALANCE SHEET 15 Dec. 31, Sept. 30, Dec. 31, Euro in millions 2002 2002 2001 Cash 741 731 763 Other Current Assets 1,370 1,305 1,122 Contracts in Progress 4,977 5,660 6,426 Fixed Assets 3,518 3,552 3,807 Total Assets 10,606 11,249…
  16. FULL YEAR 2002 RESULTS – Technip – slide 16
    CASH FLOW 16 SOURCES USES Operating Cash Flow 239.9 Capital Expenditures 126.2 Change in Working Capital 192.9 Dividends Paid 79.8 Asset Disposals 143.2 Share Buyback 49.0 Rights Issue 12.4 Debt Reduction 319.7 Treasury 22.3…
  17. FULL YEAR 2002 RESULTS – Technip – slide 17
    CONVERTIBLE BONDS 17 December 2002 February 2003 Number of Bonds Bought 165,653 100,611 Back & Cancelled Nominal Amount 765.3 MM 748.2 MM Oustanding Redemption Premium 90.4 MM 88.4 MM Financed by Credit Line: 50 MM Maturity…
  18. FULL YEAR 2002 RESULTS – Technip – slide 18
    18 III. MARKETS AND STRATEGY 1. OFFSHORE: RISING ACTIVITY IN SURF AND FLOATERS 2. ONSHORE: INTERNATIONAL GAS DEVELOPMENT 3. AUXILIARY GROWTH ENGINES 4. STRATEGIC INITIATIVE
  19. FULL YEAR 2002 RESULTS – Technip – slide 19
    OFFSHORE MARKET STRUCTURE 19 TECHNIP-COFLEXIP POSITIONNING ( Bn/yr) Technological Content Floaters SURF Subsea and 5.4 2.7 Deepwater Integrated Fixed 2.7 Complex 17.5 Shallow Water 7.3 Traditional Wells Field…
  20. FULL YEAR 2002 RESULTS – Technip – slide 20
    OFFSHORE: A FAST RISING MARKET FOR 20 SURF AND FLOATERS MARKET TRENDS TECHNIP-COFLEXIP COMPETITIVE EDGE Expected Capex CAGR: Engineering & project management (2003 2005) capabilities SURF: +13% Disciplined approach to bidding…
  21. FULL YEAR 2002 RESULTS – Technip – slide 21
    ONSHORE GAS MARKET 21 TECHNIP-COFLEXIP POSITIONNING Leadership in gas treatment and gas pipeline Active player in LNG (Nigeria, Qatargas) Pioneer in GTL: Awarded the 1st large scale project early 2003: Qatar ( 675 MM)…
  22. FULL YEAR 2002 RESULTS – Technip – slide 22
    ONSHORE: INTERNATIONAL GAS DEVELOPMENT 22 MARKET TRENDS (Next 10 yrs) TECHNIP-COFLEXIP COMPETITIVE EDGE Natural gas demand: Record expertise in gas treatment & in + 2.4% / year, 2 times faster pipeline than oil Strong positions…
  23. FULL YEAR 2002 RESULTS – Technip – slide 23
    AUXILIARY GROWTH ENGINES 23 BUSINESS SEGMENT Refining / Hydrogen Petrochemicals Other Growth Segments Global refining World map changing, Life Sciences capacity: with new capex 2000 80 MBD flowing: Power Plants 2020 120 MBD…
  24. FULL YEAR 2002 RESULTS – Technip – slide 24
    AUXILIARY GROWTH ENGINES 24 TECHNIP-COFLEXIP POSITIONNING Refining / Hydrogen Petrochemicals Other Growth Segments Refining grassroot Leader in mega Large growth potential projects (Egypt, steamcrackers Vietnam), capacity…
  25. FULL YEAR 2002 RESULTS – Technip – slide 25
    2003-2005 STRATEGIC INITIATIVES 25 ACTION PLAN EXPECTED OUTCOME Relocation of Paris staff to a Gross proceeds from asset sales single leased location (incl. sale of current HQ building): 130-150 MM Savings & cost synergies:…
  26. FULL YEAR 2002 RESULTS – Technip – slide 26
    26 IV. CHALLENGES 1. MIDDLE EAST UNCERTAINTIES 2. CURRENCY FLUCTUATIONS 3. COMPETITIVE PRESSURE
  27. FULL YEAR 2002 RESULTS – Technip – slide 27
    MIDDLE EAST UNCERTAINTIES 27 Backlog as of Dec. 31, 2002: 2,150 MM (37% of Group consolidated backlog) - None in Kuwait or Iraq Most contracts either cash positive or covered by ECAs Commitments toward suppliers include a force…
  28. FULL YEAR 2002 RESULTS – Technip – slide 28
    CURRENCY FLUCTUATIONS 28 may create Technip-Coflexip answers Foreign exchange All forex positions fully hedged gains or losses (Brazil loophole closed since 01.01.03) In 2003, a +/- 5% in / rate may lead to Consolidation impact…
  29. FULL YEAR 2002 RESULTS – Technip – slide 29
    COMPETITIVE PRESSURE 29 1 2 3 NET INCOME/REVENUES Recently: 7,4% Western players: Severe competition A New 2,0% 1,5% for DW floaters STO* FWC* MCD* Behaviour leading to risk/reward balance SPM* TEC FLR Korean -1,2% not in line…
  30. FULL YEAR 2002 RESULTS – Technip – slide 30
    30 V. OUTLOOK
  31. FULL YEAR 2002 RESULTS – Technip – slide 31
    OUTLOOK 31 Our expected growth cycle is based on two strengths: HISTORICALLY HIGH BACKLOG + ROBUST FINANCIAL POSITION (in bn) (in MM) Current 5.77 Available PreBacklog: 0,4 Credit Lines: 4.93 1.2 bn 970 MM 4.34 882 3.94…
  32. FULL YEAR 2002 RESULTS – Technip – slide 32
    OUTLOOK 32 OVERVIEW Given the time lag between contract award and full fledged execution 1st half 2003 should be similar to 1st half 2002 Pick up will appear in 2nd half 2003 and accelerate in 2004 Weather conditions may impact…
  33. FULL YEAR 2002 RESULTS – Technip – slide 33
    TARGETS AND DRIVERS: 33 A NEW CYCLE OF GROWTH Group Targets 2003-2005: Revenues CAGR + 10% (45-50% Offshore, 45-50% Onshore, 8-10% Industry) Deep Offshore International Auxiliary Developments Gas Developments Growth Engines z…
  34. FULL YEAR 2002 RESULTS – Technip – slide 34
    35 For more information, please contact: INVESTOR RELATIONS G. Christopher Welton Tel. +33 (0) 1 55 91 88 27 e-mail: cweltontechnip-coflexip.com David-Alexandre Guez Tel. +33 (0) 1 47 78 27 85 e-mail: dagueztechnip-coflexip.com
  35. FULL YEAR 2002 RESULTS – Technip – slide 35
    THE TIME FACTOR IN LUMP SUM MULTI-YEAR CONTRACTS 36 Ex.: a 3-year project valued 100 with a life of project EBITDA margin of 7% Year 0 Year 1 Year 2 Year 3 Operations BID Award In Engineering Procurement End of force Early…
  36. FULL YEAR 2002 RESULTS – Technip – slide 36
    SCHEMATIC OF A MAJOR CONTRACT FLOW IN THE ACCOUNTS 37 100 Backlog 50 Revenues Bid costs 0 EBITDA Year 0 Year 1 Year 2 Year 3
  37. FULL YEAR 2002 RESULTS – Technip – slide 37
    SCHEDULE OF MAJOR CONTRACTS ABOVE 200 M 38 2000 2001 2002 2003 2004 2005 2006 Midor - 1000m - 100% Alba - 220m - 100% OGD 2 - 580m - 50% Sincor - 300m - 36% Q Chem - 350m - 50% CTOC - 210m - 35% LNG 3 - 300m - 25% Haradh -…
  38. FULL YEAR 2002 RESULTS – Technip – slide 38
    WEIGHTED AVERAGE COMPLETION RATE OF 39 MAJOR LUMP-SUM CONTRACTS ABOVE 100 M At year end 2001 2002 2003 LOP Revenues of Major Contracts 5.9 6.3 6.2 (bn) Weighted Average 71% 59% 66% Completion Rate* Multi-year lump sum contracts…
  39. FULL YEAR 2002 RESULTS – Technip – slide 39
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  40. FULL YEAR 2002 RESULTS – Technip – slide 40
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  41. FULL YEAR 2002 RESULTS – Technip – slide 41
    TECHNIP-COFLEXIP STRENGTHS: 42 A global network of engineering centers, yards, plants and vessels
  42. FULL YEAR 2002 RESULTS – Technip – slide 42
    TECHNIP-COFLEXIP WORKFORCE 43 Scandinavia 1 190 United Benelux Russia Kingdom 400 70 2 410 Germany France 1 500 3 300 Italy USA Iberian 1 550 2 700 Peninsula 350 Abu Dhabi India Asia-Pacific 500 390 1 520 Venezuela…
  43. FULL YEAR 2002 RESULTS – Technip – slide 43
    TENDER BANK 44 Expected contract awards over the next 6 months being pursued by Technip-Coflexip: Middle East 3,200 Outside Middle East: 12,100 Offshore 8,600 Onshore/Industries 3,500 Market Pursued (6 months) 15,300
  44. FULL YEAR 2002 RESULTS – Technip – slide 44
    TECHNIP-COFLEXIP GROUP ORGANISATION 45 Daniel Valot C.E.O. Olivier Dubois C.F.O. Offshore Branch Onshore Branch Industries Branch Ivan Replumaz Daniel Burlin Jean-Nol Meary Knut Boe Jean Deseilligny

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